BUSINESS ANALYTICS & ECONOMETRICS
Predicting future is not possible for companies but they must build organizations that would survive as well as flourish in times of uncertainty. The most important aspect in uncertain times is to make the right decisions at the right time. Organizations identify that it has become imperative for them to shift their operating practices towards dynamic styles of management. During the uncertain times, businesses must rely on optimizing their core competencies. To make it further beneficial, the companies must require proper forecasting; this is the only way through which it can adjust its cost as well as production according to the fluctuations in the demand levels (Arslan & Atabek et al., 2011). In such times, the enterprise must redesign its process to ensure value addition as the focus of the business model. The external environment is not favorable for the business and so it must try to control its internal environment to survive.
The company must identify its bottlenecks and reduce them. In addition, costs must be controlled by various means; but most importantly the business must make sure that it fully utilizes the available resources and no resources are wasted in the process (Bauman, 2013). If idle capacity is available, the company may even opt to subcontract it and take certain external projects that would generate revenue for the organization. The important aspect is to empower its employees and to ensure that a safe environment is provided to them. An empowered culture would lead to innovation and increased efficiency of the workers. The research and development department must be highly efficient and must have all the details of the external environment through which most accurate forecasting can be done. Production planning is equally important as is cost control in times of uncertainty. Especially, ensuring that enough production is done to meet the demand requires accurate forecasting and availability of the required resources; and yet again, the resources must not be wasted or underutilized. In addition, the company also has to make sure that none of the production goes wasted and it must not over produce as costs must be controlled (Arslan & Atabek et al., 2011).
Arslan, Y., Atabek, A., Hulagu, T. & Sahinoz, S. (2011). Expectation errors, uncertainty and economic activity. Uncertainty And Economic Activity (August 17, 2011).
Bauman, Z. (2013). Liquid times. Oxford: Wiley.